What stands out here is There's a reason Social Security benefits are eligible for an automatic cost-of-living adjustment, or COLA, each year.
Additionally, The purpose of COLAs is to help ensure that Social Security recipients are able to keep up with their expenses over time as inflation makes the cost of living increase.
In 2025, seniors on Social Security got a 2, in today's financial world.
It's too soon to know what 2026's COLA will amount to, since that increase is based on third-quarter inflation data, in light of current trends.
On the other hand, But all told, the general consensus is that next year's Social Security raise may not be much to write, in today's market environment. Image source: Getty Images.
Conversely, If you're someone who's heavily dependent on Social Security -- and Social Security COLAs -- to make ends meet, the weeks leading up to those COLA announcements can be stressful.
The reality, though, is that having to bank on Social Security COLAs to keep up with your bills is not a great way to.
Nevertheless, If that's the situation you're in, it could pay to do the ing, considering recent developments.
Review your spending carefully If you get most or all of your retirement income from Social Security, then there's a good chance you a pretty frugal lifestyle already.
Additionally, Nevertheless, But that doesn't mean there isn't room to make further cuts. One thing it pays to do is actually go over all of your expenses and figure out if they're all really necessary.
However, It may be that canceling a subscription frees up $20 a month, or that finding a supermarket that offers a senior discount on Wednesdays puts another $30 a month back in your pocket.
When you're in a place where your Social Security COLAs make a difference, small changes these make a difference, too.
Consider a part-time job The whole point of retirement is to not work, so the idea of having a job may seem unappealing.
But if you don't have health issues stopping you from getting a job, you may want to seek out part-time work.
Additionally, Even if you decide to join the gig economy and work just a few hours a week, it could make a difference in your financial picture. Think it this way.
However, The average Social Security benefit today is $2,000 a month. If next year's COLA is the same as 2025's -- 2 (noteworthy indeed).
Furthermore, 5% -- that takes the average benefit up to around $2,050 (this bears monitoring).
But you can potentially earn much more than $50 per month driving for a ride-hailing service, house-sitting, or doing something similar -- even if it's tedious work data entry from, in this volatile climate.
Additionally, Make strategic lifestyle choices There are some parts of the country where Social Security benefits can go a lot further.
Think where you and consider whether there's a less expensive area you can relocate to.
You bably don't want to pack up and move to a less expensive state to money if you don't know a soul there and won't have a support network.
But if your sibling s in a more affordable state than you do, it may not be unreasonable to consider a move.
Along these lines, downsizing to a smaller could make sense, especially if you own yours and are sitting on a lot of equity, given current economic conditions.
Say your is mortgage-free and worth $300,000.
In contrast, If you're able to sell it, buy a smaller for less, and come away with $60,000 after accounting for all of the costs involved, a real estate agent fee, that's money you can dip into to buy yourself more breathing room.
It's not a comfortable thing to have to bank on a Social Security COLA each year just to be able to pay your basic bills.
On the other hand, If that's the situation you've landed in, see if there's room to reduce your spending, earn some money, or make a lifestyle change that leads to lower living costs.
You may find that not having to rely as much on Social Security raises each year reduces a lot of your stress.
The Author Maurie Backman is a contributing Retirement and Social Security Expert at The Motley Fool.
Nevertheless, Maurie has more than a decade of experience writing financial topics, including retirement, Social Security, and personal finance.
Prior to The Motley Fool, she worked in the finance industry, focusing on bankrupt and distressed companies (noteworthy indeed).
She also briefly worked as a toy designer and spent several years at a marketing company. She studied creative writing and finance at Binghamton University.
In her spare time, Maurie is an avid reader typically reading 100 books or more per year (something worth watching). TMFBookNerd The Motley Fool has a disclosure policy.